NEW BULLISH Plays

rue21, Inc. - RUE - close: 29.63 change: +0.42

Stop Loss: 28.45
Target(s): 33.50
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
RUE is a specialty apparel retailer in the U.S. Traders bought the dip this morning near RUE's trend of higher lows. Now the stock looks poised to breakout over resistance near $30.00 soon.

I am suggesting we launch small bullish positions if RUE can hit $30.25. We'll use a stop loss under today's low. Our multi-week target is $33.50. We want to exit prior to the late May earnings report. FYI: The Point & Figure chart for RUE is bullish with a long-term $48.00 target.

Trigger @ $30.25 (small positions)

Suggested Position: buy RUE stock @ (trigger)

- or -

buy the May $30 call (RUE1219E30) current ask $1.45

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 05/24/12 (unconfirmed)
Average Daily Volume = 304 thousand
Listed on April 164, 2011


NEW BEARISH Plays

Barrick Gold - ABX - close: 40.81 change: -0.80

Stop Loss: 42.55
Target(s): 37.50
Current Gain/Loss: + 0.0%
Time Frame: up to the May 2nd earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
It has not been a good year for the gold mining stocks. The group has been forming a trend of lower highs and lower lows. ABX recently broke down under key support near $42. The oversold bounce from last Thursday has reversed. There is potential support near $40.00 but I suspect we'll see ABX trade into the $38-36 zone.

I am suggesting small bearish positions at the open tomorrow. More conservative traders may want to wait for a breakdown below $40.00 before initiating positions instead. Our exit target is $37.50. We do not want to hold over the early May earnings report.
FYI: The Point & Figure chart for ABX is bearish with a $32.00 target.

(small positions)

Suggested Position: short ABX stock @ (the open)

- or -

buy the May $40 PUT (ABX1219Q40) current ask $1.27

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 05/02/12 (unconfirmed)
Average Daily Volume = 7.9 million
Listed on April 164, 2011